Kenya's real GDP to grow 6.2 pct in fiscal 2019-20

Source: Xinhua | 2019-01-15

Kenya's real gross domestic product (GDP) would expand 6.2 percent in the fiscal year of 2019/2020, the National Treasury projected in a policy statement on Monday.
The ministry noted that it expects the country's GDP to grow by 6.4 percent in 2020/2021 and 7 percent in 2022/2023.
"This growth will be supported by a pickup in agricultural and manufacturing activities underpinned by improved weather conditions, stable macroeconomic environment, ongoing public infrastructural investments and sustained business and consumer confidence," the Treasury said in its budget policy statement for 2019.
It observed that the outlook points to a continued coordination of monetary and fiscal policies for overall macro-economic stability, which will support robust growth, lower fiscal deficits, contain inflation and a gradual improvement in the current account balance.
The government is further undertaking measures under its development blueprint dubbed the "Big Four" plan to enhance growth, create jobs and promote inclusive growth according to the Treasury.
"Inflation is currently within the government's target range largely due to lower food prices and muted demand-driven inflationary pressures," said the Treasury.
"It is expected to remain within target in the medium term mainly due to expected lower food prices reflecting favorable weather conditions, the decline in international oil prices, and the recent downward revision in electricity tariffs," said the Treasury.
Further, the Kenyan external position is projected to strengthen over the medium term supported by a narrower current account deficit, according to the National Treasury.
"The narrowing of the current account deficit is largely due to increased exports of tea and horticulture, increased diaspora remittances, strong receipts from tourism, increased foreign direct investment in infrastructure and lower imports of food and standard gauge railway-related equipment," said the Treasury.